Comex Registered Silver Inventories Plunge Nearly 10% In One Day
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Comex Registered Silver Inventories Plunge Nearly 10% In One Day
Posted with permission and written by Steve St. Angelo, SRSrocco (CLICK FOR ORIGINAL)
In a stunning development, the Comex Registered Silver inventories experienced a large one day decline yesterday. Nearly 10% of total Comex Registered Silver inventories were removed from the exchange on the last day of the year and reported on Jan 4th.
According to the CME Group’s Metal Depository Statistics, 3.5 million ounces (Moz) of Registered Silver Inventories were withdrawn and transferred to the Eligible category:
As we can see, there was 1.5 Moz transferred out of Brinks, 1.6 Moz from the CNT Depository and nearly 300,000 oz removed from JP Morgan for a total of 3,517,348 oz. At the end of 2015 (Dec 31st), there were 40.3 Moz held in Registered Silver inventories at the Comex. After this large one day transfer, only 36.7 Moz remains.
This is an interesting development for two reasons:
- This is the lowest level the Comex Registered Silver inventories have been for the past three years and,
- The motivation for depositories to transfer that much silver out of its deliverable category.
First, the last time the Comex Registered Silver inventories were this low was in Feb 8th, 2013 at 36.2 Moz. The lowest the Registered Silver inventories fell to was 26.6 Moz in July 2011. However, the overall trend of the Registered Silver inventories was up until April, 2015… where they peaked at 70.5 Moz.
In just the past eight months, Registered Silver inventories at the Comex have fallen be nearly 50%.Again, Registered Silver inventories are those that are ready to be delivered into the market.
Second, something has motivated the holders of this silver to remove it so it is no longer able to be delivered into the market. If we assume that industrial silver demand has fallen due to a weaker U.S. and global economic activity and there is no longer a retail shortage of silver (as there was from June-Sept 2015), why are we continuing to see silver removed from the Registered Category?
You would think we would be seeing the opposite as the Registered Silver inventories started to build in August, 2011… after the peak and decline of the silver price and investment demand. And interestingly, the opposite is taking place at the Shanghai Future Exchange.
Shanghai Future Exchange Silver Inventories Surge End Of Year
Silver inventories at the Shanghai Futures Exchange (SHFE) grew from a low of 176 metric tons (mt) in January 2015 to 394 mt in June. They bottomed in August at 233 mt and then continued to build steadily until spiking at the end of the year:
What is really interesting about the build of SHFE silver inventories is the rapid increase since Dec 28th. On Dec 28th, there were 535 mt of silver at the SHFE, only 23 mt higher than the beginning of the month. Then over the next week and including the first few days in 2016, total inventories at the Shanghai Futures Exchange jumped 80 mt to 615.
Precious metal investors need to realize the Chinese view gold more as an investment than silver. Furthermore, the Chinese also have to pay a 17% vat tax on silver investment. According to the 2015 World Silver Survey, Chinese silver bar investment demand was only 6.2 Moz in 2014 while Official Coins sales were 5.9 Moz. The notion that the Chinese are buying a lot of physical silver investment is not true… however, they are buying one hell of a lot of gold.
So, this spike of SHFE silver inventories must be motivated more by the decline of industrial silver demand in China than investment demand. China is the largest silver fabricator in the world as they consumed 5,788 mt (186 million oz) of silver in 2014 via industrial applications (2015 World Silver Survey).
Again, something very strange is happening here. The Comex continues to see a drain of its Registered Silver inventories (for delivery), while the SHFE inventories are showing a rapid increase.
It will be interesting to see what happens to the silver inventories at these two exchanges over the next 6 months. If Comex Registered Silver inventories continue to fall (just like the Gold Registered inventories), this could spell more trouble for the highly leveraged paper based precious metal markets going forward.
Please email with any questions about this article or precious metals HERE
Comex Registered Silver Inventories Plunge Nearly 10% In One Day
Posted with permission and written by Steve St. Angelo, SRSrocco (CLICK FOR ORIGINAL)
Independent researcher Steve St. Angelo (SRSrocco) started to invest in precious metals in 2002. Later on in 2008, he began researching areas of the gold and silver market that, curiously, the majority of the precious metal analyst community have left unexplored. These areas include how energy and the falling EROI – Energy Returned On Invested – stand to impact the mining industry, precious metals, paper assets, and the overall economy.
You can find many of Steve’s articles on many noteworthy sites. Visit Steve at https://srsroccoreport.com.
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I hear it's actually approaching 400:1 now....
I have a feeling those buying silver will wish they had bought gold, TP and/or lead and food instead.
I have a monster of silver but most of my money in AU/Solar/Food.
http://fofoa.blogspot.com/2015/06/silver-dollar.html
I just checked. The registered inventory of silver in my gunsafe is unchanged. Therefore, COMEX can go fuck itself in the neck.
So what?
"The more articles I see like this the more I thing another big leg down is coming in the PMs. Oil to $20, Silver to $10. Gold to $800."
I would take advantage of another buying oportunity like that!
One can hope! We are already at the same as $2.00 silver in 1980s prices I hear.
This article is just dumb. To take any of the crimex statistics as factual is like giving a hooker your promise ring. The whole thing is beyond fraudulent, so why try to study it? It's like reporting on the Snow White seven dwarfs. It's a fairy tale.
I just hope whoever wins the Powerball buys all SLV and asks for delivery.
You can ASK all you want.
This seems to be anticipation of a price rise...at least, in dollars.
Why remove so much from potential circulation? The various Mints around the planet were screaming for even lower value Dore bars to refine into specie to meet demand for that specie. They were even going so far as to import silver even when domestic mine production was shrinking due to low price, and miners were being handed pink slips. And now it looks like someone has taken a huge amount and parked it.
Gold has had the limelight to itself in recent days, but it seems that the same bunch of bad actors are at work in the wings where silver resides. Someone has cards they are not showing...and it may soon be a monetary 'raise or call'. Gold and silver are not suffering from over-production like other commodities; quite the opposite, with mining down. Are the players in this poker game about to show their hands?
Ok you guys caught me. It is I, Lunatic Fringe, who has been buying up all the silver. Soon, I shall corner the market. Your days of 13 dollar silver are numbered.
Bought 300 oz of silver in the last few months. But it sure took a look time to show up as sold!
Really? Mine comes 2 days after my check or wire clears.
Yup, same here. i order in 1oz x 30 every couple of months and like a charm... here two days after order placement. APMEX.
APMEX has some of the highest premiums around.
https://comparesilverprices.com/
"Second, something has motivated the holders of this silver to remove it so it is no longer able to be delivered into the market. If we assume that industrial silver demand has fallen due to a weaker U.S. and global economic activity and there is no longer a retail shortage of silver (as there was from June-Sept 2015), why are we continuing to see silver removed from the Registered Category?"
A short squeeze?
Same day move suggests 'holder' not holders. One guy with 50 million in silver got the shivers and changed his positions. You have to wonder why. Guys with that much silver don't tend to be ignorant or impulsive.
"Same day move suggests 'holder' not holders."
Well, a single institutional holder can appear to be "a guy". But, I agree that the general consensus is that the big holders typically act in collusion to drive available inventory in one direction or another - depending on their needs. It would be unusual for one of them to step out of line and show his hand so easily. While most ComEx contracts will roll (not stand for delivery), maybe one of the pack has a need for some physical inventory - to lease?
long physical gold
long physical silver
SHFE - Shit Hits the Fan Event
;-)
As stated in the article, the Registered silver inventories were about the same in February 2013. Did not matter then.
One chart uses metric tonnes the other troy ounces, what a pain when the author is too lazy to use consistent numbers. On top of that the Comex numbers shown are "registered" category, what are the Shanghai numbers? What a pain in the ass useless article.
None of this matter so long as this zionist group can trade paper contracts, the price is going lower. No one out there to stop thier theft!
So what?
As our precious metal reserves continue to shift to the East, the balance of power will surely follow.
As stated in the article, the Registered silver inventories were about the same in February 2013. Did not matter then.
I agree. Makes no difference in the PoG or the PoS how much is registered wrt contracts. This muddled thinking has been debunked elsewhere and shows either a cognitive bias (most likely) or a certain naivety on the part of the author.
The more articles I see like this the more I thing another big leg down is coming in the PMs. Oil to $20, Silver to $10. Gold to $800.
I have yet to understand people who do not see the forest through the trees. The value is in the physical. It is a storage of value that will maintain value unlike paper assets that have no value in and of itself.
One day one will wake up and realize that paper assets will hold no worth to the holder.
Paper is paper. Precious metals historically has retained value, and in times of crises, has increased in its worth.
Think of it not so much as an investment but as security against the faux economy and the financial hoax that it is being revealed to be.
Prepare accordingly.
But what difference does it make how much Silver or Gold COMEX has? Gold is 300:1.....What's the "magic" proportion where it all goes belly up?
NOBODY CARES
It all smells like Skittles to me.
Travon! Is that really you?